Authorizes county agriculture development boards to acquire agricultural equipment for lease to new and beginning farmers.

A4031

ASSEMBLY, No. 4031

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 12, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

SYNOPSIS

���� Authorizes county agriculture development boards to
acquire agricultural equipment for lease to new and beginning farmers.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning agricultural equipment leasing by county
agriculture development boards and supplementing Title 4 of the Revised
Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� This act shall be known
and may be cited as the �County Agriculture Equipment Leasing Act.�

���� 2.��� As used in this act:

���� �Board� means a county
agriculture development board established pursuant to section 7 of P.L.1983,
c.32 (C.4:1C-14).

���� �Farmer� means the same as the
term is defined in R.S.39:3-25.

���� �Agricultural equipment� means
machinery, implements, and tools used in farm operations, including, but not
limited to, tractors, tillage equipment, planters, harvesters, balers,
irrigation systems, drones, or post-harvest processing equipment.

���� �Lease� means the same as the
term is defined in N.J.S.12A:2A-103.

���� �Acquire� means the same as
the term is defined in section 2 of P.L.2017, c.297 (C.48:24-2).

���� 3.��� a. A board may:

���� (1)� acquire agricultural
equipment by purchase, long-term lease, donation, shared-use agreements, or
through other lawful means, subject to the availability of funds.� A board may
also develop agreements or incentive programs with established farmers or
agricultural businesses to facilitate the leasing of privately owned equipment
to new and beginning farmers; and

���� (2)� lease agricultural
equipment to farmers under terms and conditions it deems appropriate. These
terms and conditions may include, but are not limited to, payment schedules,
usage rules, lease duration, maintenance obligations, and insurance requirements.

���� 4.� a.� Each board that
establishes a program for lease agreements entered into pursuant to this act
shall:

���� (1) give priority to
agreements that:

���� (a) support new and beginning
farmers or farmers with demonstrated financial need;

���� (b) promote efficient,
innovative, or sustainable agricultural practices; and

���� (c) provide access to
equipment that is otherwise cost-prohibitive for individual farmers to
purchase.

���� (2)� establish, and publish on
the board�s Internet website, procedures for inspecting the equipment,
enforcing lease terms, assessing damages, and resolving disputes;

���� (3)� maintain records of all
lease agreements; and

���� (4)�� annually submit a report
to the State Agriculture Development Committee summarizing:

���� (a) the number of leases
executed;

���� (b) types of equipment leased;

���� (c) the average lease
duration;

���� (d) farmer participation by
county and farm size; and

���� (e) program revenues and
expenditures.

���� b.��� Each lease agreement
entered into pursuant to this act:

���� (1)�� shall require the farmer
to maintain the leased equipment in good working order, subject to normal wear
and tear, and to return the equipment in similar condition; and

���� (2)�� may:

���� (a) require the payment of a
refundable security deposit, to be held by the board and returned upon
satisfactory inspection of the equipment at the end of the lease term, less any
amounts necessary to cover damage beyond normal wear and tear; and

���� (b)�� be structured to recover
the costs of acquisition, maintenance, storage, transportation, insurance, and
administration, or may be subsidized through State, county, or federal funds.

���� 5.��� The Department of
Agriculture, in consultation with the State Agriculture Development Committee,
may establish programs or incentives including, but not limited to, tax
credits, liability protections, and cost-share arrangements, to encourage
established farmers and equipment owners to make equipment available to boards
or to new and beginning farmers through leasing programs established by a board
pursuant to this act.

���� 6.��� a. A board may apply
for, and the State Agriculture Development Committee may provide, grants or
other financial assistance to support the acquisition or long-term lease of
agricultural equipment for the purposes of this act.

���� b. The State Agriculture
Development Committee may allocate available appropriations, or any other funds
made available for this purpose, to support county agriculture development
board programs established pursuant to this act.

���� c. Funds provided by the State
Agriculture Development Committee may be used by a board for equipment
acquisition, storage, maintenance, transportation, insurance, and
administrative costs related to the implementation of equipment leasing
programs authorized under this act.

���� d. The State Agriculture
Development Committee may establish application procedures, eligibility
criteria, and reporting requirements for boards seeking financial assistance
under this section.

���� 7.��� The Department of
Agriculture, in consultation with the State Agriculture Development Committee
and the boards, shall, in accordance with the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.) adopt rules and regulations as
necessary to implement this act, including but not limited to:

���� a.� standard lease terms and
conditions;

���� b.� eligibility criteria for
farmer participants;

���� c.� reporting requirements;
and

���� d.� oversight and auditing
procedures for participating county agricultural development boards.

���� 8. This act shall take effect
immediately.

STATEMENT

���� This bill, titled the �County
Agriculture Equipment Leasing Act,� authorizes county agriculture development
boards to acquire agricultural equipment and lease it to new and beginning
farmers in New Jersey.

���� Under the bill, a county
agriculture development board may acquire agricultural equipment through
purchase, long-term lease, donation, or shared-use agreements, and may also
develop incentive programs or agreements with established farmers and
businesses to facilitate the leasing of privately owned equipment to beginning
farmers. The board may lease equipment under terms it deems appropriate,
including payment schedules, maintenance obligations, and insurance
requirements.

���� The bill requires
participating boards to prioritize leases that assist new or financially
vulnerable farmers, promote efficient and sustainable agricultural practices,
and improve access to cost-prohibitive equipment. Boards must publish program
procedures, maintain lease records, and report annually to the State
Agriculture Development Committee (SADC) on participation and financial
activity.

���� The bill allows the Department
of Agriculture, in consultation with the SADC, to establish incentives such as
tax credits, liability protections, or cost-sharing to encourage equipment
availability for new farmers. It also authorizes the SADC to issue grants or
financial support to boards, and for boards to use those funds for acquisition,
storage, maintenance, and administrative costs.

���� The concept of providing
assistance with agricultural equipment purchasing or leasing was identified as
a key recommendation in The Next Generation of Farming in New Jersey report,
which highlighted the importance of improving access to equipment for new and
beginning farmers as a means of promoting farm viability and intergenerational
succession.